WhatsApp Pay launches full operations in Brazil; still in test-run in India

WhatsApp Pay first started testing in India two years back. They had hope that the country will be the first to start using the technology. However, it seems the company made a global debut of the feature in another developing country, Brazil.

What is WhatsApp Pay?

Zuckerberg cleared that WhatsApp is working with local banks, including Banco do Brasil, Nubank, Sicredi as well as Cielo, the leading payments processor for merchants in Brazil. The company revealed in an official blog post that it has built payments with security as a priority. Also, WhatsApp tweeted:

WhatsApp users in Brazil can now send money to friends and family or pay a business right from your chat 💸💸💸 pic.twitter.com/BwrcCq9CJW

— WhatsApp Inc. (@WhatsApp) June 15, 2020

How to use WhatsApp Pay?

The payment method will use a special six-digit PIN or fingerprint to stop unauthorised transactions. The post stated, "Payments on WhatsApp are made using Facebook Pay." It will just be like UPI Transactions.

You link your WhatsApp account to your Visa or Mastercard credit or debit card. The local partners include Banco do Brasil, Nubank and Sicredi. Cielo, a payments processor, is also working with WhatsApp to complete transactions.

There will be no fees for consumers to use the payments service, but merchants will pay a processing fee to receive payments.

WhatsApp Pay in India

WhatsApp Pay was first tested in India. The instant messaging platform started the testing phase back in 2018. Back then, it used UPI as the mode of transaction. However, they didn't roll out the feature widely due to regulatory issues. But WhatsApp wanted to roll out the payment service last year in India. Also, it was only tested on 1 million Indian users, whereas the company has about 400 million users in India.

But yes, this news comes as a surprise. WhatsApp had been testing its payments service among users in India for months. we expected it come out first in India. Plus, the Jio-Facebook deal made it seem more likely, as Jio holds over 30% internet userbase in India.

What did Mark Zuckerberg have to say on the matter?

Facebook CEO Mark Zuckerberg posted the news on Monday. He said that Brazil is the first country where it is widely rolling out payments in WhatsApp. He added:

Today we're starting to launch payments for people using WhatsApp in Brazil. We're making sending and receiving money as easy as sharing photos. Due to this small businesses will be able to make sales right within WhatsApp. To do this, we're building on Facebook Pay, which provides a secure and consistent way to make payments across our apps.

Read More: Why WhatsAppPay can be a game-changer in India’s digital payment industry